Select Harvests (ASX:SHV) has launched a fully underwritten capital raising to secure approximately $80 million.
The funds will be raised through a pro-rata accelerated non-renounceable entitlement offer and a placement to institutional investors.
The initiatives will bolster the company's growth strategy and operational efficiency. Current indicators show a thriving year for Select Harvests, with a forecasted almond crop of 29,500MT and an expected 79% of this crop already contracted.
The rising global almond prices contribute positively to the company's outlook.
FY24 underlying EBIT is projected at $17-$19 million, while underlying net profit after tax is anticipated between $1.5-$3 million.
David Surveyor, Select Harvests Managing Director and CEO remarked, "The market conditions resulting from the lower than forecast California almond production, low carry-in and declining bearing acres in California are improving the price with the forecast 2024 crop to be in the range of $7.70/kg - $7.75/kg."
The proceeds from this capital raise will be used for debt repayment, facility headroom, and capital investments to increase processing capacity at the Carina West facility.
Bell Potter Securities and Barrenjoey Markets are acting as joint lead managers and underwriters for the offer.
Trading in Select Harvests shares is currently halted to facilitate the completion of this offer, with trading expected to resume on Sept. 23.
Select Harvests is a vertically integrated almond food company that manufactures, processes and markets almond products for the Australian retail and industrial markets, in addition to exporting almonds globally.